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Posted by on Jun 13, 2013 in Companies |

Apple admits executive caused a spike in prices of e-books in the U.S.

Apple admits executive caused a spike in prices of e-books in the U.S.

(Cc) nikkorsnapper / Flickr

The senior vice president of Internet software and services of Apple, Eddy Cue, appeared today in court for the trial facing the company, charged with publishers to set the of in the United States.

Cue said that initially, considered entering the market of e-books and that he discussed with Steve Jobs offer an agreement in which Apple would not enter the sale of books if Amazon did not enter the music business . But a deal like this could easily be considered illegal and anticompetitive.

The Department of Justice (DoJ) filed a lawsuit against Apple accusing the company of colluding with five publishers to raise prices of e-books, which until then were sold for USD $ 9.99 on Amazon, going to cost from USD $ 12.99. According to the DoJ, publishers forced Amazon to adopt an “agency model”, in which the publishers are setting the price, and do not allow the seller (Amazon or another) can reduce or change prices.

Cue admitted that as a result of Apple’s agreements with publishers, book prices would rise. According Cue, we stopped importing this issue because the contracts they achieved, ensured that Apple would have access to the cheapest price possible on the Internet, and still could keep their 30% commission.

The DoJ attorney, Lawrence Buterman, he wondered if his customers complained about the rising prices. “They may or may not have, do not remember,” he replied simply Cue.

Link: DOJ to Apple’s Eddy Cue: ‘Did your customers thank you for raising prices?’ (The Verge)

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